Deleted by Kat.

Double-post.

Torpedo wrote on Apr 10^th, 2013 at 12:17pm:


Well, Japan has certainly got a very high Debt to GDP ratio, 2nd worst, next to Zimbabwe, supposedly.

That said, that's about where the comparison stops! Japan's Economy is obviously much. much larger, than Zimbabwe & the Global side effects from a collapsing Japan are like chalk & cheese, compared to a collapsing Zimbabwe.


The following article, may be of interest?
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Japan Vs. Newton (And Certain To Lose)

Conventional thinking and reporting has it that Japan is conducting a larger version of the same monetary experiment they've been running for about 15 years. The implication here is that we can safely analyze what Japan is up to through the same monetary lens as always, but with a slightly wider aperture.

By now, we are all familiar with the details. Japan has initiated a program of monetary expansion that goes by the shorthand of 2-2-2. In two years, the Bank of Japan (BoJ) will fully double the monetary base as it seeks a minimum of 2% inflation. In the aftermath of this announcement, the yen weakened by a whopping 8% against the dollar, the Nikkei stock average vaulted up by roughly 10%, and the $10 trillion Japanese government bond market had to be frozen twice because of intense volatility.

In truth, what Japan is running is as much a massive social experiment as it is a monetary experiment. It has such enormous implications to everyone, but especially the Japanese people, that we should all be paying very close attention.

As I am sure you have figured out by now, simply having more money in the system will not automatically result in more money chasing goods. In fact, without a good reason to borrow and then spend that money, those new funds may well just sit in the banking system, chasing nothing related to real goods and services in the real economy. Instead, that money will simply chase financial assets such as stocks and bonds.

The BoJ knows this, and yet their plan revolves around the idea that they can create inflation by simply doubling the monetary base. Does this mean they are confident that there is pent-up consumer demand that was stymied by a lack of cheap funds from the banking system? The very short answer is 'no.' The BoJ knows perfectly well that more base money will do nothing to stimulate additional inflation via consumer demand, and they know this because Japan has had rock-bottom borrowing costs for a very long time.

Conclusion
The BoJ is not just running the largest monetary experiment in their history, but also the largest social engineering experiment. Trust is an essential component in every economy and for every currency. The BoJ has just upped the ante by explicitly and specifically targeting trust in the yen. Perhaps they know what they are doing, and we certainly hope so, but I happen to think it is playing with fire. There really aren't any guidebooks for it to follow, and even if there were, it is doubtful that the economists in charge would have been required to study them during their academic training and political careers.

If the notion of your pilots flying blind bothers you, then you are probably not very happy or confident with the BoJ's actions here. If I were a Japanese citizen, I would immediately convert my yen holdings to something, anything, else. Swiss francs, gold, dollars – anything (!) would be preferable to me here. Once your central bank declares war on its own currency, this is just the prudent thing to do.

For everyone else, Japan is now the largest economic Petri dish on the planet and is well worth studying for what happens next. The early results, with a manic pulse in the Nikkei coincident with arrhythmic gyrations in the Japanese government bond market, suggest that something has been shaken loose in Japan. Trust, perhaps?

Link -
http://seekingalpha.com/article/1328681-japan-vs-newton-and-certain-to-lose?sour...
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The fact is that irrespective of who is now running Japan, their Economy is set to shrink, over the coming decades.

No matter what "fun & games" their Politicians &/or Central Bank comes up with, the Japanese Population is set to Decline over coming Decades.

Decline big time it will & those Declines are set in concrete AND following directly as a result of that dip in Population, Japanese Consumption is also set to Decline, as will the REAL GDP.

Eventually, the Monetary props holding up the Japanese Economy will run out & their REAL Economy will be exposed, the picture will shock & the shock waves that follow will disturb the Global Economy far, far more than Zimbabwe could, even in Hollywood's wildest imagination!